Do the heirs of a deceased partner automatically become partners in the business?
Question
There a few partner’s in a business. One of the partners passed away. Do the heirs of the deceased partner automatically become partners in the business?
Answer
The partnership of a partner in a business terminates upon death. The heirs of a partner do not automatically become partners in the business. The heirs are entitled only to a pay-out of their shares in the business.
However, the heirs may discuss an option of continuing the partnership with the existing partners, which will be subject to the terms and conditions of the new partnership. (Shaami 4/327)
And Allah Ta’ala Knows Best
- Answered by
- Mufti Ismaeel Bassa
- Checked by
- Mufti Ebrahim Desai
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